Quick service restaurants (QSRs) have come a long way. In recent years, new concepts and ideas inspired by international cuisines, and old ones have spurred quick service restaurant growth. The competition in this industry has always been stiff. Existing brands along with new brands are constantly introducing new trends, with a focus on innovation.
By Rachit Kumar, senior consultant, Food & Beverages, Persistence Market Research.
To keep up with the rapid change driven by changing demographics and consumer trends, QSRs are focusing on areas of innovation including healthy and diet-friendly alternatives, rebranding, drink options, desserts, menu expansion with regional, international, and seasonal flair.
International expansion is a more reactive strategy than the proactive one for quick service restaurants. Hence, quick service restaurants in European countries including France, Italy, Germany, Spain, the UK, Portugal, and the Netherlands have witnessed significant growth in the last few years.
The recent research published in the European Journal of Preventive Cardiology found that coronary heart disease was higher among the urban population, especially those who have fast food outlets within 500 m of their home. Hence, such studies targeting quick service restaurants are leading to the change in menu and increased availability of healthy and fresh food.
Digitization to Unlock Significant Opportunities for Growth
Digitization is redefining how consumers are engaging with brands in the quick service restaurant industry. Mobile ordering and mobile payment systems are being integrated by quick service restaurants & bar across countries on a large scale. Reducing barriers to the digital economy, states in Europe have given approval for flagship policy supporting digital economy. This is likely to create better growth conditions for domestic platforms to grow in Europe.
To turn around the decline in sales and support a new way of consumption, big brands in the QSR industry such as McDonald’s, Pizza Hut, are focusing on digital transformation. For instance, McDonald’s in France has added customized platform with a wallet to provide customized ordering experience. McDonald is also planning huge digital improvements across various regions. Nearly 90% of McDonald’s outlets in France provide self-ordering kiosks.
Meanwhile, Subway Europe has also partnered with Cineplex Digital Media to design, operate, and support digital menu boards at Subway outlets across Europe. Europe is witnessing a boost in the digital economy. Moreover, digital output among its member economies has been growing at nearly 10% each year for the past five years, as per the Organization of Economic Cooperation and Development (OECD).
You can read the entire article in the Nov-Dec issue of Frozen Food Europe print magazine.
